- NBR Chairman Md Abdur Rahman Khan wants a single VAT rate for all sectors.
- He believes a single rate would be beneficial if businesses agree.
- He is open to lowering the rate for the service sector if needed.
- He wants to move towards a system where businesses pay VAT based on their value addition.
- He believes a single VAT rate would eliminate the need for separate 15 percent and 7.5 percent rates.
- He acknowledges that the government initially planned to implement a single VAT rate in 2012 but deviated from that plan due to business opposition.
- He emphasizes that VAT should remain as VAT and that a single rate would be implemented if all businesses agree.
- He highlights the benefits of an account-based VAT system where businesses can take input VAT credit.
- The government issued VAT and excise tax amendments in January 2025.
- The NBR later reduced or waived VAT rates on several products, goods, and services due to protests and requests from stakeholders.
Source: unb.com.bd
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
